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Last year, Andy started in business as a landscape gardener. He used his savings to buy tools but did not have enough left to buy
Last year, Andy started in business as a landscape gardener. He used his savings to buy tools but did not have enough left to buy a van for the business. Blake, one of Andy's friends, offered to lend him 10,000 at a low interest rate to buy a van and Andy accepted. Blake is an entrepreneur who makes a living helping start-up businesses get off the ground. Andy agreed with Blake to repay the loan by the end of June this year. Business has been slow for Andy and a dispute with one of his customers, Orla, has not helped with his cashflow as the time to repay the loan to Blake approaches. Andy agreed to design and build a floodlit rockery and water feature for Orla in her garden at a cost of 4,000 (2,000 payable in advance and 2,000 payable on completion). The work was to be finished by the end of April as Orla planned to use her garden for a big party to celebrate her fiftieth birthday on 1 May. When the work was at the half-way stage, Andy realised he had vastly underestimated the costs of the job and how long it would take him to finish. He told Orla that unless she gave him another 1,500 to finish the job on time, he would abandon the job and look for more lucrative jobs elsewhere. Orla was furious but as she could not find another contractor to complete the work at such short notice, she reluctantly agreed to pay Andy the extra money. Andy finished the work on time for Orla's party. She paid him 2,000, as originally agreed, but she is refusing to pay him any more money. Andy has calculated that, including interest, he needs 10,300 to repay Blake but he only has only 9,000 available. Andy therefore asked Blake to accept that 9,000 now in full and final settlement of Andy's debt rather than 10,300 at the end of June. Blake agreed and Andy transferred the money to him last week. Blake has just contacted Andy telling him that he has changed his mind and he wants the remaining 1,300 after all. Advise Andy, explaining his legal position as to whether he is liable to pay the sum of 1,300 to Blake and whether he is entitled to the 1,500 that Orla promised him. identify whether Andy and Blake intended to create legal relations; explain whether Andy gave consideration for Blake's promise to accept 9,000 in full and final settlement of the loan; explain whether Andy gave consideration for Orla's promise to pay him the extra 1,500; and identify whether Orla could argue that there are any other grounds for setting aside her promise. Please define important terms and relevant legal principles, cite authorities and apply the principles to the facts as you do so and conclude
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